2 increase their productivity. The next chapter will details the performance of CST
after the TPM implementation.
However, CST still have to face of many challenges in order to maintain the TPM program such as failure factor, less expertise of maintenance crew, the increase of the
production cost and some barriers from the management. CST is still looking for the best way to improve the implementation of TPM to achieve their mission and vision
to be successful TPM company.
Output Performance from 1988-2003
5 10
15 20
25 30
35 40
45 50
19 88
19 89
19 90
19 91
19 92
19 93
19 94
19 95
19 96
19 97
19 98
19 99
20 00
20 01
20 02
20 03
Year M
illio n
K G
Radial steel
x-playters Legend
Figure 1.1: Graph for Output Performance of CST from 1998 until 2003 CST Annual Report 2003
1.2 Problem Statement
This study is performed to study the implementation of TPM at CST. It covers the journey of implementation and any related issue that occurred in CST. The related
issue is referred to benefits, challenges, limitations and the require elements to
3 improve the TPM implementation plan. In addition it also will show the current state
of TPM implementation at CST
1.3 Objective
The objectives of this study are:
1. To identify any related issue of TPM implementation in terms of the benefits, challenges, limitations and the require elements to improve the TPM
implementation plan. 2. To study the current stage of TPM implementation at high volume company.
1.4 Scope of Study
This study is only a case study of TPM implementation at CST. This study is performed to identify the benefits, challenges, limitations, the require elements to
improve TPM implementation and to review the current state of TPM implementation. The study was conducted from November 2006 until Mac 2007. For
data gathering, only observation, interview and questionnaire survey for 56 respondents were used. Some of the data was analyzed by using SPSS programming
version 13.0. The result may not applicable for other company.
1.5 Company Background
Sime Tyres International M Sdn. Bhd. STI is a subsidiary of Continental Sime Tyre Sdn Bhd CST. Based in Malaysia, CST is 75 owned by Continental AG of
Germany and 25 owned by Sime Darby Berhad of Malaysia. STI began its operation on 20th December, 1979 and was then known as IT International Sdn.Bhd.
In 1986, there was a change in the shareholding structure and the company became a wholly owned subsidiary of PSD Holdings Sdn.Bhd., a subsidiary of Sime Darby
4 Berhad.
On 2nd November, 1988 the company changed its name to Sime Tyres International M Sdn.Bhd.
STI also signed a Technical Co-operation Agreement with Sumitomo Rubber Industries of Japan DUNLOP JAPAN in 1987. This move
is to ensure that STI has access to the latest tyre production technology and design. To ensure
that the Sime Darby Tyre Group will be better equipped to meet the new challenges as well as capitalizing on the opportunities in the new environment of
AFTA and WTO, Sime Darby also signed another agreement with Continental AG giving Continental a stake in SDC Tyre. On 1st October 2003, another agreement
was signed with Continental AG giving Continental 51 share in SDC Tyre which in effect resulting the name of the holding company to be changed to Continental
Sime Tyre Sdn Bhd CST.
Currently the Sales and Marketing activity is being handled by the subsidiary company Continental Sime Tyre Marketing Sdn.Bhd. that is located in Petaling Jaya.
CST exports to over 58 countries worldwide. It has over 400 dealer outlets domestically Peninsular and East Malaysia. Figure 1.2 shows their export market.
Percentage of Export Market
Asean 15
Europe 41
Australia 18
Middle East 23
Asia 2
Others 1
Others Asean
Europe Asia
Australia Middle East
Figure 1.2: The Percentage of Export Market for CST CST Annual Report 2003 Legend
5 From the chart, it can be seen that CST’s major export market is from Europe with
41 , due to their high market demand and high standard of living. The second runner is from the Middle East with 23, and then follows up by Australia with
18, Asean with 15, Asia with 2 and lastly 1 for the other markets. This data proves that CST has a big potential in the market worldwide.
Since CST was established in 1979 with a work force of only a few hundreds of employees, after over 20 years of progress, it has grown to be the largest private
company in Alor Star with about 1600 employees producing motorcycle, scooter, passenger car and light truck commercial tyres. It had also been awarded ISO 9002
for Retread Plant SIRIM, Malaysian Standard MS 149 and 1394 SIRIM, European Standards ECE 30, ECE 54, ECE 75 VCA and TUV, ISO 9002 SIRIM,
ISO 14001 SIRIM and so on from the nationwide and international.
Since they implemented TPM a few years ago, there are some improvements in their company performance. However, they are still facing some related issues regarding
The TPM implementation. The next chapter will be details of all these aspects.
1.6 Benefit of the Study
